What more can I say? The Delta variant is raging, unemployment remains high, debt levels are soaring, but stonks are at record highs!
All is good!
No worries!
We’ve got a federal election coming up in Canada in September, the Natural Ruling Party is likely to be re-elected to a majority government, at which point they will likely “find religion” and decide that running $400 billion annual deficits is not a good long term plan, and they will announce spending cutbacks, and taxes on the rich, and then life will get interesting.
Or not.
Probably not.
“Spending cutbacks” does not equal a “balanced budget”. It simply means that we won’t be sending relief cheques to 9 million Canadians (as we did with CERB in 2020). We will spend a lot on infrastructure, and climate change, and diversity, and other stuff, so there will still be lots of spending, which should keep the economy humming.
Taxes on the rich are merely a political fiction. The rich have accountants, and lawyers, and they can relatively easily avoid taxes, so it’s generally only the middle class, or what remains of it, that gets stung.
The only uncertainty is whether or not interest rates ever creep up, in which case the real estate bubble may burst, and then we are toast.
But that’s likely a year, or two, or ten away, so no worries.
Not surprisingly, crypto remains strong, so if you are worried, that’s as good a place as any to stash your money.
Probably.
Two more weeks until “back to work” happens in September, so let’s see how it goes.
See you next week.
Stawks at Record Highs
by JDH on August 13, 2021
What more can I say? The Delta variant is raging, unemployment remains high, debt levels are soaring, but stonks are at record highs!
All is good!
No worries!
We’ve got a federal election coming up in Canada in September, the Natural Ruling Party is likely to be re-elected to a majority government, at which point they will likely “find religion” and decide that running $400 billion annual deficits is not a good long term plan, and they will announce spending cutbacks, and taxes on the rich, and then life will get interesting.
Or not.
Probably not.
“Spending cutbacks” does not equal a “balanced budget”. It simply means that we won’t be sending relief cheques to 9 million Canadians (as we did with CERB in 2020). We will spend a lot on infrastructure, and climate change, and diversity, and other stuff, so there will still be lots of spending, which should keep the economy humming.
Taxes on the rich are merely a political fiction. The rich have accountants, and lawyers, and they can relatively easily avoid taxes, so it’s generally only the middle class, or what remains of it, that gets stung.
The only uncertainty is whether or not interest rates ever creep up, in which case the real estate bubble may burst, and then we are toast.
But that’s likely a year, or two, or ten away, so no worries.
Not surprisingly, crypto remains strong, so if you are worried, that’s as good a place as any to stash your money.
Probably.
Two more weeks until “back to work” happens in September, so let’s see how it goes.
See you next week.